close
MENU
1 mins to read

Government buying stabilises Chinese share market

Intervention ends three-day slide and curb panic selling.

Nevil Gibson
Thu, 30 Jul 2015

Gyrations in China’s sharemarket appear to have faded for the meantime as more government buying support emerged.

A three-day slide ended yesterday again with sharp gains in the last half-hour of trading.

The Shanghai Composite finished 3.4% up at 3789.16 after trading swung between gains and losses. The smaller Shenzhen Composite rose 4.1% to 2198.81.

The gains – which ranged across all sectors – offset an 11% drop over three days, starting last Friday.

But the market is still down more than a quarter from its June high.

About 400 stocks listed in Shanghai and Shenzhen reached their 10% upward daily limit.

The late surge was attributed to buying on behalf of a government agency that has pledged to support the market at times of volatility.

On Tuesday, the main sharemarket index moved in a 6% band before ending with a 1.7% loss.

On Monday, it dropped 8.5%, the biggest daily fall in more than eight years, as investors panicked and government buying support appeared absent.

Use MyNBR Tags to track people and companies — and receive key-word email alerts. Find out how here.

Nevil Gibson
Thu, 30 Jul 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Government buying stabilises Chinese share market
50021
false